The Industrial Establishment (N&FH) Act, 1963 – Brief Notes

The State Act for Karnataka is ‘The Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963. As per the request of the Government to enforce observance with wage to the National and Festival Holidays, this Legislation was enacted.

Two National holidays have to be given to the employees on the 26th of January and 15th of August, which will be paid holidays for employees who are in continuous service for ninety days immediately preceding the date of the holiday. 

1st of May has also been declared as a paid holiday for establishments in Karnataka other than establishments controlled by the Government of India. Paid holidays are also provided during general or bye-elections.

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Under this Act, the employers and employees are allowed to choose from the list of festivals the paid holidays.

  • The employee is entitled to payment of wages for each holiday available to him under this act, regardless of what their contract might state. 
  • If the employee works on a holiday, he is entitled to double the normal wage or at his option, he can obtain a substitute holiday with pay on some other day. 
  • Section 11 of the Act provides that the employee is entitled to any benefits provided to him under law or his contract that may be more favourable to him than those granted by this Act and those shall not be affected by this Act. 
  • The inspector has the power to enter the establishments at any reasonable time to carry out an examination of the area and the documents, registers, records, any evidence he sees fit. 
  • If the employer is found guilty of obstructing the work of the inspector, he is liable to pay a fine up to Rs. 125 for the first offence and up to Rs. 250 for subsequent offences. 

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